Home / CoreWeave News: $2B Bond, Earnings, & Market Sentiment

CoreWeave News: $2B Bond, Earnings, & Market Sentiment

By: Jasmin Espinas
May 24, 2025

CoreWeave, a rising name in cloud infrastructure built for AI workloads, continues expanding its presence across the global cloud computing sector. In recent CoreWeave news, the company has borrowed a $2 billion high-yield bond that will mature in 2030.

This update also breaks down CoreWeave’s Q1 2025 results, current investor sentiment, and its near-term outlook.

Latest CoreWeave News: CoreWeave Raises $2 Billion In Junk Bond Offering

On May 21, CoreWeave secured $2 billion through the U.S. junk bond market, adding liquidity to its balance sheet and supporting its expanding AI data center operations.

The bond issuance follows a turbulent IPO in March, during which the company had to scale back its offering.

Despite the earlier setback, CoreWeave’s debt attracted strong investor interest. Executives increased the raise by $500 million above the original target.

The bonds mature in 2030 and carry a 9.25% interest rate.

As a result, CoreWeave’s stock jumped 16% on the day of the bond announcement, bringing its post-IPO gain to over 160%.

The company plans to use the proceeds to retire existing debt.

According to a statement to CNBC, the offering was five times oversubscribed, indicating a strong appetite for CoreWeave’s long-term growth potential.

CoreWeave Q1 2025 News: Revenue Backlog, AI Storage, and Cloud Expansion

CoreWeave released its first-quarter earnings on May 14, reporting progress across its infrastructure, customer growth, and financial goals.

The company added over $11 billion to its revenue backlog through a deal with OpenAI and confirmed new partnerships, including one with IBM to support the rollout of Granite models.

CEO Michael Intrator highlighted the momentum, citing expanded infrastructure, technical milestones, and continued demand for AI-focused cloud services.

He added that CoreWeave is scaling rapidly to meet that demand, driven by workloads that require low latency and high throughput.

At the same time, infrastructure expansion remained a priority. By the end of Q1, CoreWeave brought total active compute power to 420 megawatts, with 1.6 gigawatts under contract.

The company also reported advances in performance benchmarks, with its NVIDIA GB200-based clusters earning top ratings in SemiAnalysis’s ClusterMAX™ system.

In addition, CoreWeave AI Object Storage became generally available, offering fast access to training data.

Other platform improvements included support for GB200 instances across its stack, billing and usage metric dashboards, and enterprise tools like NVIDIA AI Enterprise software.

Financially, the quarter was backed by $1.4 billion in IPO proceeds, bringing total capital raised to $17.2 billion.

CoreWeave aims to continue scaling its infrastructure to serve the increasing complexity and scale of AI applications.

CoreWeave News: Surge in Stock Price Meets Rising Short Interest

CoreWeave stock has surged throughout May, doubling in price after the company disclosed a computing deal with OpenAI reportedly worth up to $4 billion.

Investors responded positively to the announcement and CoreWeave’s first earnings report, which showed revenue growth backed by enterprise clients, including Microsoft, who continue allocating large budgets to AI infrastructure.

CoreWeave’s rally is running so hot it’s leaving analysts’ stock predictions in the dust https://t.co/796Tw8JADt

— Bloomberg (@business) May 21, 2025

However, not everyone sees the rally as sustainable. Critics point to its rising debt load, high borrowing costs, and aggressive capital spending plan, which ranges between $20 billion and $23 billion for 2025.

On March 31, the company’s debt-to-assets ratio was 54%, compared to a 30% average among Nasdaq 100 firms.

Short interest began building during the second week of May as skeptics leaned in. By week three, 45% of CoreWeave’s available shares had been borrowed by short sellers, up from 18% in late April, based on S3 Partners data.

The contrast between strong demand for the stock and rising bets against it reflects a divided outlook.

Price action also showed the tension. On Wednesday, May 21, shares rose 19%, but they dropped 6.7% on Thursday, May 22. Still, CoreWeave has climbed over 160% since its IPO in March, when it listed at $40 per share.

While some analysts remain optimistic, more than 65% of those tracked by Bloomberg currently rate the stock as hold or sell.

On May 15, D.A. Davidson’s Gil Luria downgraded the stock, comparing CoreWeave’s financial risks to WeWork’s failed growth strategy.

Conclusion

CoreWeave’s recent bond raise, earnings, and partnerships signal strong near-term growth. However, its debt load and spending targets leave little room for missteps.

Investors remain split between momentum-driven optimism and concerns about long-term sustainability. Therefore, they must weigh growth prospects against financial risk.

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